Exam 5: The Economics of Health Care

Adverse selection in the market for health insurance arises because

Of the following,which has most likely contributed the most to the rapid rise in health care costs in the United States?

Health care makes up ________ of the U.S.economy.

Regarding the Patient Protection and Affordable Care Act (ACA)

Figure 5-5 Figure 5-5 represents the market for medical services with and without insurance, and the effect of a third-party payer system on the demand for medical services. -Refer to Figure 5-5.With insurance and a third-party payer system,what is the amount of the deadweight loss?

If a fire insurance company requires firms buying fire insurance to install automatic sprinkler systems,the insurance company is trying to reduce

Of the following high-income countries,which has the highest mortality ratio for cancer?

In which of the following countries does health insurance not pay for most preventive care procedures?

Consider a used car market in which half the cars are good and half are bad (lemons).Suppose the average price of a good car is $9,000 and the average price of a lemon is $3,000.If rational buyers are willing to pay $6,000 for a used car,then sellers will agree to sell mostly lemons at this price.What is the term used to describe this situation?

Higher deductibles for employer-provided health insurance will tend to shift the ________ curve for medical services to the ________.

What is moral hazard?

Most employees ________ on the value of health insurance provided by employers,and most people ________ when buying individual health insurance policies.

Changes in the health of the average person are an important indicator of changes in the standard of living.

Under the Patient Protection and Affordable Care Act (ACA),residents who do not have health insurance will not be allowed to seek employment.

Vaccinations tend to result in a positive externality.Draw a graph showing the market for vaccinations,including both the marginal private benefit curve and the marginal social benefit curve.Identify the market equilibrium price and quantity,the efficient equilibrium price and quantity,and the deadweight loss.

Of the following high-income countries,which has the highest infant mortality rate?

The rising cost of uninsured patients receiving treatment at hospital emergency rooms is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.

In the United States,consumers usually pay ________ than the true cost of medical treatment because of ________.

The difference between adverse selection and moral hazard is that

Briefly explain what you would expect to see happen to spending on health care over time,with health care being considered as a normal good.